Memorandum

September 2, 1996

To: Executive Departments and Agencies

From: William F. Patriarca

Chief Accounting Officer

Governmentwide Accounting and Reporting

Subject: 1996 Update to the Federal Government’s 

Budgetary Accounting Guide

 

I’m pleased to present the update to the Federal Government’s

Budgetary Accounting Guide . This publication was produced to assist

personnel in both accounting and budget areas by providing guidance on

proper recording of budgetary accounting events and completing common

budgetary reports. The guide should be a very valuable working tool for

agencies in the proper treatment of all types of resources.

Since the time the original guide was published in 1994, the new

OMB Circular A-34 and SF-133 Budget Execution Report have greatly

impacted this publication’s content. Because of the complexity and volume

of changes, we’re issuing a completely new version of this guide, as

opposed to page inserts containing new material. We look forward to the

day when we will be able to simply release changed items for you to insert

into your master publication.

In the pages that follow, you’ll find a summary of the many changes

to the Budgetary Accounting Guide . In addition, we’ve included an

explanation of certain limitations and disclosures pertaining to data and

reporting. The Financial Standards and Reporting Division (FSRD) staff

has included this summary and explanatory material to assist you in

understanding the scope of this update. 

Please contact FSRD at (202) 874-9980 for further assistance in

using this publication in your agency. We look forward to providing you

with expert guidance and will release updates to this guide as necessary. 
Budgetary Accounting Guide

Table of Contents

Page Number

Chapter I--Introduction ...................... I-1

Chapter II--Appropriations ................... II-1

Chapter III--Collections other than 

through Reimbursable Work Agreements ...... III-1 

Chapter IV--Borrowing Authority .............. IV-1

Chapter V--Contract Authority ................ V-1 

Chapter VI--Reimbursable Authority ........... V-1

Appendix ................................. A-1 
 September 1996 I-1

 Resources - Contra resources = Status of resources

 Budget of the United States Government, Fiscal Year 1992 (Washington, D.C.: U. S. Government 1

Printing Office), part IV, p. 15.

Final Monthly Treasury Statement for Fiscal Year 1993 (Washington, D.C.: Department of the 2

Treasury, November 22, 1993), p. 2.

Ibid., p. 20. 3

 See, for example, OMB Circulars A-11, "Preparation and Submission of Budget Estimates," and A-34 4

"Budget Execution."

Net resources

=

Status of resources

CHAPTER 1:

Introduction and Overview

Scope and Purpose

From fiscal 1989 through 1993, budgetary technicians, those who design and maintain 1 2

outlays of the United States Government increased accounting systems, and auditors.

from about $1.1 trillion to $1.4 trillion. This document illustrates pro forma entries

Simultaneously, the Federal deficit increased from for the basic Federal budgetary accounting

$153 billion to $255 billion. The cumulative equation, which is: Net resources equals status of

deficit at the end of fiscal 1993 reached $3.2 resources, where “net resources” is defined as

trillion. resources minus contra resources. 3

Under these circumstances, the need to

control funds to avoid over-obligation and overexpenditure becomes ever more important.

Federal agency heads must establish systems

of internal control over their operations, according

to 31 U.S.C. 3512. Also, 31 U.S.C. 1341 and

1517(A)(1), the Anti-Deficiency Act, provide

criminal penalties for knowingly over-obligating

or over-expending budgetary resources. The

Office of Management and Budget has instituted

budgetary reporting requirements to help ensure

that Act is not violated and that budgetary

accounting is properly performed.4

This document illustrates pro forma

accounting and reporting for budgetary resources.

It is intended for use by those who establish

accounting policy, operating accountants and
Budgetary Accounting

 I-2 September 1996

 General Framework 

for Preparing Entries

Net Resources

Appropriations

Collections other than through Reimbursables

Borrowing Authority

Contract Authority

Reimbursable Authority

Status of Resources

Unapportioned

Apportioned

Allotted

Committed

Obligated (through undelivered orders)

Expended

Expired (where applicable)

Canceled (where applicable)

 The document shows separate sets of entries

for the following types of resources:

 Appropriations;

 Collections (other than through

reimbursable work agreements);

 Borrowing Authority;

 Contract Authority; and

 Reimbursable Work Agreements. 

Using accounts in the United States

Government Standard General Ledger (SGL),

this document illustrates:

 Anticipation or realization of net

resources; 

 Apportionment of net resources and

subsequent changes in status; and 

 Account closings.

The general framework used to prepare these

entries is shown in the box at right. Specific

accounts used are presented in separate

frameworks for each type of resource in the

chapters covering the resources. A master

framework for all types of resources is presented

in the appendix. In addition, crosswalks from SGL

accounts to these key reports are set forth for each

type of resource: 

 SF-133, “Report on Budget

Execution;” and

 FMS-2108, “Year-End Closing

Statement.”

Specific crosswalks for each type of resource

are presented in the chapters covering the

resources. 
Budgetary Accounting

 September 1996 I-3

Relationship to the SGL

This publication is an illustrative While agencies should use SGL accounts in

interpretation of the SGL. It provides separate recording their transactions, they are free to

information on budgetary accounting only. design such entries as are appropriate to

The SGL integrates budgetary and accomplish their internal and external reporting

proprietary accounting for each transaction, as

would be required in an efficient, effective

accounting system. There is no suggestion

intended that separate, non-integrated systems for

budgetary and proprietary accounting should be

used by agencies. 

Budgetary entries that would normally be

accompanied by related proprietary entries are so

marked in the text. The document is not intended

to substitute for the SGL or to be a section of the

SGL, and it is not a directive.

1

needs. Thus, they may use entries other than those

illustrated here or in the SGL.

 Similarly, agencies may use crosswalks

other than those illustrated.

Other combinations of accounts may yield

line items in standard reports. In some cases,

legislation or regulation may provide for reports to

be prepared in accordance with unique agency or

program requirements.

Limitations

Effective use of this document requires a The entry to adjust certain credit reform

basic understanding of accounting--that is, accounts for interest receivable

training equivalent to a first-semester college erroneously recorded as budgetary

course in accounting principles. resources. The adjustment process is

It does not cover the underlying theory and contained in Treasury Credit Reform

definitions or repeat lengthy material available Case 4 on liquidating funds; or

elsewhere. Such theory and material is covered in Transfer of budgetary authority from

other documents such as set forth in the listing of one agency to another. Entries for that, as

selected references presented later in this chapter. presently constituted, are contained in

The entries presented here cover most basic Section III, Accounting Transactions, of

situations, but they are not intended to be the SGL.

comprehensive. Some agencies may have

transactions that are not included in this Finally, it should be noted that in recording

document. For instance, this document does not budgetary entries for a given program containing

cover: more than one type of resource, agencies would

 Entries to record cancellation of resource sections presented here. 

budgetary authority involved with related The organization of the document is by

cancellations of receivables and payables. resource type, and it does not purport to show

This accounting is set forth in a Standard entries by operating program. Many of the

General Ledger Board treatise on the resources listed in the references section are

subject; or tailored to specific agency programs.

need to make entries from more than one of the

 OMB Circular A-127 "Financial Management Systems," (Washington, D.C.: Office of Management and 1

Budget, July 23, 1993), p. 6.
Budgetary Accounting

 I-4 September 1996

Organization of this document

The remainder of this document is divided Chapter IV covers borrowing authority;

into chapters covering each resource and an

appendix. Specifically:

 Chapter II covers appropriations;

 Chapter III covers collections other

than through interagency reimbursable

work agreements;

 Chapter V covers contract authority; 

 Chapter VI covers reimbursable

authority; and 

 The appendix provides a master

framework of accounts used.

References

The following references provide underlying

theory, explanation, illustration, and definitions of

budgetary accounting concepts and terminology.

 Accounting for Basic Operating

Appropriations and Reimbursables,

prepared by the U. S. General Accounting

Office (AFMD-PPM-2.1, September

1990).

 Accounting for Expired Appropriation

Authority Under the Requirements of P.L.

101-510, prepared by the United States

Government Standard General Ledger

Board under the auspices of the Financial

Management Service (FMS), Department

of the Treasury (October 1991).

 Accounting for the Present Value of

Direct Loans and Loan Guarantees Under

the Federal Credit Reform Act of 1990,

prepared by FMS, Department of the

Treasury (September 1992).

Conversion of Federal Credit Reform

Conventional Accounting Data to meet

Audited Financial Statements Form and

Content Requirements for Direct Loan

Programs, prepared by FMS, Department

of the Treasury (October 1992).

Conversion of Federal Credit Reform

Conventional Accounting Data to meet

Audited Financial Statements Form and

Content Requirements for Loan

Guarantee Programs, prepared by FMS,

Department of the Treasury (October

1992). 

A Glossary of Terms Used in the

Federal Budget Process (GAO/AFMD2.1.1, January 1993)

 Illustrative Cases in Accounting under

the Credit Reform Act of 1990, prepared

by the Financial Management Service,

Department of the Treasury (separate

cases with various dates 1992-1994).

 JFMIP Core Financial System

Requirements, Financial Management

System Requirements, FFMSR-1, (April

1994).

 OMB Circular A-11, “Preparation and

Submission of Budget Estimates” (July

1994).

 OMB Circular A-34, “Budget

Execution” (December 1995). 
Budgetary Accounting

 September 1996 I-5

 OMB Circular A-127, “Financial

Management Systems” (July 1993).

Treasury Financial Manual: I TFM 2-

4200, “Reports by Agencies on

Unexpended Balances of Appropriations

and Funds (FMS-2108),” (under revision

at this writing).

 U.S. Government Standard General

Ledger, Treasury Financial Manual, Vol.

No. I, Supplement No. II (S2), (1986);

TFM Transmittal Letter S2-01, (June

1989); Bulletin No. S2-93-01,

(November 1992); Bulletin No. S2-94-01

(May 13, 1994); TFM Transmittal Letter

S2-96-02 (April 1996).